“Australia is facing a critical shortfall in housing supply, with only 180,000 homes built in the last year—well below the 240,000 needed annually to meet demand. This is not just a numbers issue, it is a crisis that is affecting families, renters, and would-be homeowners across the country.

HIA is proposing a $12 billion infrastructure investment over the next five years as a cornerstone of the solution. 

“This funding is essential to unlock land supply and deliver the enabling infrastructure - such as roads, water and sewerage – that housing developments require. 

“The lack of essential infrastructure is a handbrake on housing supply, and this Budget must take steps to prioritise infrastructure funding to fast-track projects and make land ready for development,” Ms Martin said.

“The Submission also outlines the need for a coordinated, national approach to planning reform to reduce delays and cut unnecessary costs. 

“The inefficiencies in our planning systems are strangling housing supply. It is time for a national strategy to align efforts across all levels of government, streamline processes, and remove the regulatory hurdles that are inflating the cost of housing. A National Planning Summit would be a powerful first step in driving genuine reform.

“In addition to addressing supply and infrastructure, HIA is also focusing on workforce shortages, which pose a significant challenge to meeting housing targets.

“To deliver the Government’s commitment of 1.2 million homes over five years, we need 83,000 additional skilled workers in the residential construction industry. 

“That means investing in streamlining migration pathways for in-demand trades and increasing support for apprentices through better training incentives and retention programs.
“The average cost of a house-and-land package in major cities is now $1.3 million, making home ownership unattainable for many Australians. 

“First-home buyers are being locked out, with saving for a deposit taking upwards of six years. We need to expand and simplify programs like the Home Guarantee Scheme and explore innovative approaches, such as allowing superannuation to be used to buy a house.

“This is not the time for half-measures. Housing is fundamental to Australia’s economic stability and social wellbeing. The 2025-2026 Budget is an opportunity to make meaningful progress by delivering the investments and reforms needed to address the crisis,” Ms Martin concluded.